Reliance offers to slash international bandwidth prices by 70%

PTIMar 8, 2004, 03.31pm IST

NEW DELHI: In a major development, Reliance Infocomm today said it could reduce prices of international bandwidth by upto 70 per cent if the access to bottleneck facilities (landing station), currently with VSNL, were opened up for competition.

"We can bring the prices down to one million dollar per Synchronous Transport Module (STM) of 155 mbps international bandwidth from existing about five million dollar, provided bottleneck facilities are opened up at fair market prices," Manoj Modi, Executive Director, Reliance Infocomm, told PTI.

This would translate into reduction in prices of international bandwidth by about 70 per cent, Modi said. He added that this would help the entire IT-enabled services, especially the emerging Business Process Outsourcing (BPO) segment.

Reliance Infocomm, which acquired Flag Cable System recently, has sufficient international bandwidth but was facing difficulties in getting it released from the incumbent Videsh Sanchar Nigam Ltd (VSNL) which has the exclusive right on the landing stations.

"Various operators are asking us for international bandwidth, but we are unable to provide as VSNL has not released even 15 STMs. This is costing India many IT and BPO related business opportunities," said Modi.

Reliance is hoping to set up its own landing stations but that would take another 10 months.